User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Friday February 11, 2022 - 11:49:37 GMT
Global-View.com - www.global-view.com

Share This Story:
| | Email

Trading in the Forex Twilight Zone

If I told you CPI would come in hotter than expected, US yields would spike sharply higher and the dollar, which initially moved higher, would reverse course to trade sharply lower, would you say we have entered the Forex Twilight Zone?

What made this even more confounding was the dollar falling as markets started to priced in 6 Fed rate hikes in 2022 (vs. 5 hikes pre-data) and calls came out for a 50bp rate hike at the March 16 FOMC meeting (vs. 70/30 idds in favor of a 25bp hike pre-data)

What is the Twilight Zone?

According to Wikipedia, The Twilight Zone (marketed as Twilight Zone for its final two seasons) is an American horror anthology television series created and presented by Rod Serling, which ran for five seasons on CBS from 1959 to 1964.[1] Each episode presents a stand-alone story in which characters find themselves dealing with often disturbing or unusual events, an experience described as entering "the Twilight Zone," often with a surprise ending-and a moral….

Does this sound familiar?

Well. this is what happened on Thursday, February 10 until stocks finally paid notice of rising US bond yields and fell sharply. This, in turn, saw the dollar recover ground, which has since been extended into early Friday trading.

Personal Observation

The following is not meant to be a plug for The Amazing Trader (AT)but just a personal observation. I have learned and passed on to subscribers not to ignore what AT is showing on your charts no matter what your gut says. I also say don’t look to fade a move until AT gives a sign it is time to do so.

This was proved once again to be invaluable advice on Thursday until the market had a reality check and moved out of the Forex Twilight Zone.

The moral of this episode reminded of an old trading adage that went something like this: Markets can remain irrational longer than you can remain solvent. Keep this in mind the next time you see the market entering the Forex Twilight Zone.

Looking ahead, the jury is out whether currencies such as the EURUSD can move out of current ranges (e.g. 1.13—1.15 with the next key AT level looming below at 1.1266).

In any case, logic says the US interest rate risk suggests the dollar should find support or at least a limit on its downside ahead of the March 16 FOMC meeting.

On the other hand, there may be another reason why the dollar has not moved higher that I will address in a coming article.

Jay Meisler, co-founder, global-view.com

[email protected]

 

Forex Trading News

Forex Research

Daily Forex Market News
Forex news reports can be found on the forex research headlines page below. Here you will find real-time forex market news reports provided by respected contributors of currency trading information. Daily forex market news, weekly forex research and monthly forex news features can be found here.

Forex News
Real-time forex market news reports and features providing other currency trading information can be accessed by clicking on any of the headlines below. At the top of the forex blog page you will find the latest forex trading information. Scroll down the page if you are looking for less recent currency trading information. Scroll to the bottom of fx blog headlines and click on the link for past reports on forex. Currency world news reports from previous years can be found on the left sidebar under "FX Archives."



Actionable trading levels delivered LIVE to YOUR charts

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

Mon 27 May 2019
AAGB/US- Holiday
Tue 28 May 2019
A 14:00 US- Consumer Confidence
C 13:00 US- Case-Shiller
Wed 29 May 2019
A 08:55 DE- Employment
AA 18:00 US- BOC Decision
A 18:30 US- EIA Crude
Thu 30 Mar 2019
AAEZ/CH- Holiday
A 12:30 US- Weekly Jobless
Fri 31 Mar 2019
AA 10:00 EZ- Flash HICP
A 12:30 US- Personal Income, Spending, Deflator
AA 14:00 US- Final Univ of Michigan


Global-View Affiliate Program

We are starting an affiliate program to market some of our products.

Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.

Put the word "affiliate" in the email subject line.

Contact us

Start trading with forex broker Markets Cube




pic

Retail Forex Brokerage Changing!

Are you looking for your first broker or do you need of a new one? There are more critical things to consider than you might have thought.

We were trading long before there were online brokers. Global-View has been directly involved with the industry since its infancy. We've seen everything and are up-to-data with recent regulatory changes.

Our Best Brokers listing section includes:Forex Broker Reviews, Forex Broker Directory, Forex Broker Comparisons and advice on How to Choose a Forex Broker

If would like guidance, advice, or have any concerns at all ASK US. We are here to help you.

SEE Our Best Brokers List

Currency Trading Tools

  • Live rates, currency news, fx charts. 

  • Research reports and currency forecasts.

  • Foreign Exchange database and history.

  • Weekly economic calendar.

Directory of  Forex trading tools

 
Terms of Use    Disclaimer    Privacy Policy    Contact    Site Map


Forex Forum
Forex Trading Forum
Forex Forum + forex rates
Forex Forum Archives
Forex Forum RSS
Free Registration

Trading Forums
Currency Forum Guide
Forum Directory
Political Forum
Forex Brokers
Compare Forex Brokers
Forex Broker News
Forex Broker Hotline

Forex Trading Tools
Currency Trading Tools
Forex Database
FX Chart Points
Risk/Carry Trade Chart Points
Economic Calendar
Quicklinks to Economic Data
Currency Futures Swaps
Fibonacci Calculator
Currency Futures Calculator

Forex Education
Forex Learning Center
FX Trading Basics Course
Forex Trading Course
Forex Trading Handbook

Forex Analysis
Forex Forecasts
Interest Rate Forecasts
Central Bank Forecasts

FX Charts and Quotes
Live FX Rates
Live Global Market Quotes
Live Forex Charts
US Dollar Index Chart
Global Chart Gallery
Daily Market Tracker
Forex News
Forex Blog
Forex News
Forex Blog Archives
Forex News RSS
Forex Services
The Amazing Trader
Forex Opportunities
Forex Affiliates
Forex CopyTrading
GVI Forex